Besides, the new policy has defined agriculture as `an human enterprise to produce biomass through optimum utilisation of land, water and other natural resources.'

CE Karunakaran of Sterling Technologies and Venture Corp has already suggested in a document paper that two possible proposals like hardwood plantation project and project for biomass energy generation from agriculture and forest residues.

Both these projects can avail of investment and technology benefits from donors in developed countries under the activities implemented jointly (AIJ) programme and clean development mechanism (CDM) of UN Framework Convention of Climate Change for carbon dioxide and other greenhouse gas abetment. The AIJ investment in these areas will be a definite additionality and not adisplacement of other investments.

He called upon the government to negotiate in appropriate forum for these benefits as the Kyoto Protocol is unclear about phrasing of forestry credits and framework for CDM. Article 3 of the Kyoto Protocol has limited the scope of forestry to afforestation and reforestation for netting the country emission with sinks. He said that it is also apparent that the same definition would apply to Article 6 and 12 for credits under AIJ and CDM.

This will have the effect of discounting plantation forests beyond the first rotation and therefore, needed to be taken up in the subsequent meetings of parties to clearly state the intent.

Another area of concern is that Article 12 uses the term `emission reduction' to qualify CDM leaving the entire forestry sector in a limbo, if strict interpretation is to be made.

Karunakaran estimated that the incremental cost of the hardwood plantation project in the first phase is $ 2.8 per tonne of carbon dioxide sequestered.

This relates toplanting and maintaining trees for the first rotation of the first phase area. The rest of the project can be financed from the timber proceeds of the first phase. The carbon dioxide valuation can be designed to include a surplus amount so that some projects to benefit the local community can be started alongwith the commencement of the AIJ project.

The aim of the project would be to remove carbon dioxide and sequester it in fast growing hardwood species like tectona grandis (teak) under intensively managed plantation conditions. The first phase of the project will cover 1200 hectre in 15 locations and the second phase covering 2400 hectre will commence 20 years after the first phase. The hardwood species will be harvested after a first rotation of 20 years and thereafter in 15 year rotation. The project duration will be 50 years.

The document paper estimated that the project will sequester 11 mts of carbon dioxide over the project period of 50 years. The baseline mitigation potential for projectsimplemented in fallow lands is negligible. There will, however, be some project case emission on account of energy use for drip irrigation which can be offset by local bio-electricity generation.

The final price of carbon is far lower than average abatement cost in developed countries and lower than forestry sequestration costs in these countries. The document paper further suggested sharing of carbon credits between the donor and host countries flowing from the final agreed price for carbon dioxide sequestered as the AIJ and CDM framework do not preclude such agreement.